India’s consumer durables sector, currently contributing 0.6% to GDP, aims to boost its share by 1.5 times and become the fourth-largest market by 2027
The demand for a wide range of consumer durable goods is growing as a result of the ongoing increase in disposable income and technological innovation in India. This in turn is fuelling fierce competition among the various consumer durable brands that are available across the country. India is viewed by multinational organizations as one of the primary markets from which future growth is likely to originate.
During (April-June) 2024, electronics exports reach US$ 8.44 billion. With robust growth, India aims to achieve electronics manufacturing worth US$ 300 billion and electronics exports of US$ 120 billion by FY26.
By 2025, India’s Consumer Electronics and Appliances Industry is predicted to be the fifth-largest in the world. The Indian Appliances and Consumer Electronics (ACE) market is predicted to nearly double in the next 3 years, reaching approximately Rs. 1.48 lakh crore (US$ 17.93 billion) by 2025. Smartphones have emerged as India’s fourth-largest export category, experiencing a 42% growth to reach US$ 15.6 billion in FY24. The Indian appliances and consumer electronics industry stood at US$ 9.84 billion in 2021 and is expected to more than double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025. Electronics hardware production in the country stood at US$ 87 billion in 2022. India’s consumer electronics and home appliances market is set to grow by US$ 2.3 billion between 2022 and 2027, registering a CAGR of 1.31%. The Indian room air conditioner market is projected to reach Rs. 50,000 crore (US$ 5.6 billion) by FY29.
According to ICRA, the Indian room air conditioner market is expected to grow 20-25% YoY in FY25, reaching 12-12.5 million units, with 10-12% growth forecasted for FY26, driven by rising demand and favourable conditions.
FDI in the Appliances and Consumer Electronics (ACE) industry has nearly doubled to US$ 481 million by June 2022, up from US$ 198 million in 2021. Between April 2000-March 2024, electronic goods attracted FDI inflows of US$ 4.83 billion.
In the financial year (FY) 2022–23, India’s exports of mobile phones doubled from Rs. 45,000 crore (US$ 5.45 billion) in 2021-22 to a whopping Rs. 90,000 crores (US$ 11.12 billion). India is the 2nd largest mobile manufacturer in the world.
According to a report from Counterpoint’s Make in India service, shipments of “Made-in-India” smartphones remained flat in 2023 to reach over 152 million units. In September 2022, monthly mobile phone exports from India crossed the US$ 1 billion mark for the first time ever. The smartphone market in India declined 9% YoY to reach shipments over 152 million units in 2022.
• The dishwasher market in India is expected to surpass US$ 90 million by 2025-26, driven by rising demand from metro cities such as Mumbai, Hyderabad, Delhi, and Bangalore.
• Refrigerator Market in India to increase to US$ 6.7 billion by FY26 from US$ 3.8 billion in FY21 at a CAGR of 9.5%.
• Air Conditioner Market in India to increase to US$ 9.8 billion by FY26 from US$ 3.8 billion in FY21 at a CAGR of 20.8%.
• India’s smartwatch shipments grew 50% YoY in FY23, driven by the rising penetration of smartwatches, proliferation of low-cost devices to target first-time users.
• The flat panel television (LED, LCD, HD, and UHD) market in India was valued at US$ 9.05 billion in FY18 and is expected to reach US$ 16.24 billion by FY24, growing at a CAGR of 9.25%.
India’s consumer durables sector, currently contributing 0.6% to GDP, aims to boost its share by 1.5 times and become the fourth-largest market by 2027. With strong growth, it aspires to lead the global industry by 2030.
According to a report from Counterpoint’s “Make in India” initiatives, Mobile phone shipments rose during 2014-2022, registered a CAGR of 23% YoY to cross 2 billion cumulative units.
According to a report by Counterpoint Research, India’s smart TV market grew by 74% YoY in the second quarter of 2022. Xiaomi stood as the leader with a 13% market share, followed by Samsung at 12%
The market also grew 28% in YoY in 2022 and the growth was primarily driven by strong shipments during the festive season in the third quarter, multiple new launches, discounts and promotions, and the demand for bigger screen-size TVs in the lower price tier.
(Report Source)
Indian Consumer Durables Presentation | IBEF
Covered By: Mobility India / IBEF Report
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